Spectrum Manufacturing Had the Following Information in Its Records at the End

question 98

Multiple Choice

Spectrum Manufacturing had the following information in its records at the end of the year: What was the balance in Manufacturing Overhead, and when closed what will the effect be on gross margin?

• A)$3,000 underapplied, and increase
• B)$3,000 overapplied, and increase
• C)$3,000 underapplied, and decrease
• D)$3,000 overapplied, and decrease

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Definitions:

Abdominal

Pertaining to the abdomen, the body region that contains the primary organs of the digestive system.

Thoracic

Pertaining to the thorax, or chest region, which houses the heart and lungs among other vital organs.

Dorsal

Relating to the back or posterior part of an organism in contrast to the ventral, or front, side.

Mediastinum

The central compartment of the thoracic cavity, located between the lungs, containing the heart, thymus, esophagus, trachea, and major blood vessels.